Which of the following statements about cooperatives is false?

• A. III only
• B. I and III
• C. II and III
• D. I and II

Answer: (D)

The concept being tested is identifying statements about how cooperatives are actually structured and governed, and spotting misstatements that don’t fit that model.

Cooperatives are owned and controlled by their members, with governance typically based on one member, one vote. Any surplus or profit is distributed back to the members based on their use or patronage, not on how much capital they invested. They generally do not distribute profits to external shareholders. If a statement claims voting power is tied to capital invested or that profits go to non-members or external investors, that would be false. The statement that aligns with the cooperative model would be the one describing true democratic control and patronage-based surplus distribution, while the other two contain inaccuracies about ownership, control, or distribution.

Thus, the correct choice is the one that marks the first two statements as false, with the third statement reflecting how cooperatives truly operate.